Residential Research

What do the proposed EPC regulations mean for the residential rental market?


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By 2028, all domestic properties in the private rented sector (PRS) in England and Wales could require an Energy Performance Certificate (EPC) rating of C or above. This has undergone government consultation and the policy design is being finalised. The initial plans state that any new tenancies must meet these new criteria by 2025, and all tenancies must abide by 2028. The penalty for not having a valid EPC will also be raised from £5,000 to £30,000 from 2025. These changes are part of the government’s commitment to reach net zero by 2050, which also include the transition away from fossil fuel heating systems.

According to DLUHC data, 64% of private rented properties (2.26m homes) in England and Wales are rated EPC D or below. At 60%, London has the fewest proportion of rental homes rated EPC rating D or below. Wales (70%) and Yorkshire and The Humber (69%) have the highest.

Source: DLUHC